Of the Following Characteristics of Competitive Markets, Which Are Necessary

question 8

Multiple Choice

Of the following characteristics of competitive markets, which are necessary for firms to be price takers?
(i) many sellers
(ii) goods offered for sale are largely the same
(iii) firms can freely enter or exit the market

• A)(i) and (ii) only
• B)(iii) only
• C)(ii) and (iii) only
• D)all are necessary

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Definitions:

Flexible Budget

A budget that is adaptable and varies according to the changes in activity level or volume.

Net Operating Income

The profit generated from a company's core business operations, excluding deductions of taxes and interest.

Facility Expenses

Costs associated with the physical locations a business operates, including utilities, maintenance, and rent or mortgage payments.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate financial planning.